Impala Platinum Forecasts 49% Profit Decline Amid Low Metal Prices

South Africa’s Impala Platinum anticipates a profit drop of up to 49% for the six months ending December 2024, citing persistently low metal prices. The company, the world’s second-largest producer of platinum group metals (PGMs), expects headline earnings between 1.65 billion rand and 1.95 billion rand ($89.39 million to $105.65 million), down from 3.26 billion rand in the same period a year earlier.

Impala attributed the decline to weaker dollar pricing for PGMs and a stronger rand, which outweighed gains from increased production and sales. The company’s refined output grew by 2% to 1.79 million ounces, while sales rose 5% to 1.77 million ounces during the six-month period.

Meanwhile, Anglo American Platinum, Impala’s larger competitor, is also bracing for a profit decline of up to 46% for the 2024 financial year. The company cited low metal prices, restructuring costs, and expenses tied to its demerger from the parent company as contributing factors. Anglo American Platinum will publish its half-year financial results on February 27.